https://www.adviso.

ca/en/blog/business/organizational-culture-can-influence-project-management/

May 3, 2017

In every company, project management happens within the much larger context of the
company’s organizational culture. Having a good understanding of this broader context can help
to keep the work of project management in synch with the objectives of the organization, and
aligned with already-established practices. Often discredited, we underestimate how corporate
culture can affect a project’s progress – for better or worse.

Even within similar industries, there are often differences in the way that companies treat the life
cycle of a project, documentation, resources, etc. that stem from differences in corporate culture.
There is no one type of organizational culture that’s better or more productive than the rest. They
are simply different, and these differences have an impact on project managers.

In this article, we will explain how organizational structure and corporate culture influence
project management.

Organizational influences on project management

Things like the culture and structure of an organization can influence the way projects are
managed and executed.

Along the same lines, the level of maturity of project management within an organization and the
management processes in place can also impact how smoothly a project is carried out.

As soon as a project involves multiple third parties such as partners, sub-contractors or even
clients, the success of the project quickly becomes dependant on the contributions of each
stakeholder.

For example, if a project depends upon the active participation of a sub-contractor whose project
management processes are less mature, the progress of the project could slow down significantly,
which in turn would prevent it from being delivered on time.
What is corporate culture?
Corporate culture, also known as organizational culture, refers to the full range of a company’s
characteristics and components. The goal is to differentiate a company from its competitors, but
also to act as a unifying force by improving the lines of communication between company
employees.

Corporate culture is based in part on employees’ shared values, and is in part defined by
management, company history, employees’ professional culture, etc.

Where does project management fit in all this?

Now that you’ve gotten a bit of a definition of what organizational culture is, we’re going to
explore why an understanding of corporate culture matters for project managers.

As described in the PMI Guide to the Project Management Body of Knowledge (PMBOK
Guide), 5th edition, “The culture of an organization is created by the experiences of its members.
The majority of organizations have developed their own unique cultures through years of
practice and common usage.”

These experiences include the following elements:

• Vision, mission, values, beliefs and common expectations

• Policies, methods and procedures
• Incentives and reward systems instituted within a company
• High or low risk tolerance
• View of leadership, hierarchy and relationship to authority
• Code of conduct, ethics and work hours
• Work environment

Projects considered to be aligned with organizational culture may have smoother

implementations and higher success rates than projects that challenge these cultural norms. Also,
understanding the organizational culture and its relationship to project management can help
companies figure out which projects to pursue and which to put aside. This is a priority at Adviso
that we apply to understanding our clients’ realities, aligning ourselves with their values and
corporate culture, and getting involved on that level.

Organizational culture and conflict

Project managers therefore need to interact with a wide range of cultural systems, often
simultaneously. They aren’t always familiar with the cultural influences, and often run into
conflicts and misunderstandings when dealing with different resources, providers and clients.

Often rooted in differences in values, conflicts can also result from communications problems
within a single company. For example, when a company has offices and teams worldwide, the
language or vocabulary used might have very different meanings or interpretations, which could
lead to misunderstandings and frustration within a team. Project managers, often the
intermediaries, can find themselves stuck between a rock and a hard place. Here, the best
practice would be to identify the communications tools to be used from the outset of the project
(email, calls, terms to be used, definitions, etc.) and apply and maintain clear communication
throughout the project. Communications methods can be built into organizational culture.

Although a certain amount of conflict is inevitable, it can often be minimized by understanding

the cultural frameworks, personalities, and personal and organizational motivations within the
team. It’s important to make a concerted effort to speak and listen in a way that takes these
differences into account. A reactive, oppositional approach to obstacles to the project or another
person’s inflexibility can polarize differences, escalate conflicts and make it challenging or even
impossible to complete a project.

It is therefore important to identify the factors that can help create an organizational culture that
incorporates project management, including: understanding the value and benefits that project
management brings to both the project and the organization itself, as well as aligning projects
with the organizational and business strategies.

In conclusion, several elements of a company’s structure and culture can have an impact on how
smoothly projects can be managed. Having a good understanding of this broader context during
the planning phases of a project allows you to ensure that the work of project management is
carried out in harmony with the objectives of the organization and managed in alignment with
established practices.